Kenya’s economy is projected to rebound in 2018 to record a growth rate of 5.5% according to the 17th Edition of the Kenya Economic Update report launched by the World Bank on Tuesday 10th April 2018 at the Intercontinental Hotel. This follows recovery of the economy from effects of multiple headwinds in 2017 that dampened growth to an estimated 4.8%. Improved rains, the frittering away of political uncertainty and recovery in the global economy are set to support the economy growth steadily to 6.1% by 2020.
The report also notes that:
- Business activity is improving and has reached a 2 year high of 54.4 points in March 2018,
- Private sector credit is still weak at around 2%.
- Private sector investment contribution to GDP has been declining since 2012 whereas government investment is increasing.
- Poverty in Kenya has declined from 43.6% in 2005/6 to 35.6% in 2015/16 but the effect is yet to be felt across the country.
The launch was graced by the Principal Secretary East African Community Affairs Ms. Betty Maina, who reiterated government’s commitment to setting enabling policies that will enhance Private sector contribution to the Big Four. KEPSA CEO, Ms. Carole Kariuki who represented the private sector in the meeting mentioned reduced private sector credit and lack of policy predictability in the country as the main causes for declining private investment contribution to GDP. She expressed private sector commitment to work with the government to achieve the Big Four and open up opportunities for private sector investment.
Please click on the download link below to access the full report.